EFFECTIVENESS OF VALUATION PROCEDURES AMONG ESTATE SURVEYING AND VALUATION FIRMS IN ILORIN, NIGERIA

Abstract

Effective valuation practice depends not only on professional knowledge but also on consistent application of procedures that make value opinions reliable, transparent and defensible. This study assessed the effectiveness of valuation procedures among Estate Surveying and Valuation firms in Ilorin, Nigeria. A descriptive cross-sectional survey was adopted. The study covered 40 registered firms identified from the Kwara State Branch NIESV directory, while valid responses were obtained from 32 firms. A knowledgeable respondent - typically a principal partner, branch manager or senior valuer - was purposively selected from each participating firm. Data were analysed using frequencies, percentages, weighted mean scores and a Procedural Effectiveness Index (PEI) derived from the five-point response scale. The findings show a high overall level of procedural adoption, with a grand mean of 4.61 and an overall PEI of 92.2%. Obtaining clear client instructions and identifying the basis of valuation recorded the highest PEI of 96.2% each. Compliance with professional standards and disclosure of assumptions followed at 95.0%. Physical inspection and verification of comparable transactions were comparatively weaker, with PEI values of 86.8% and 85.0% respectively. The study concludes that valuation procedures in the sampled firms are generally effective in operational terms, although effectiveness is less consistent at evidence-verification and inspection stages. The study recommends stronger comparable-data verification, standardised inspection documentation, internal report review and development of reliable property transaction databases.